The Family Home and Care Fees – What Counts

The family home, and how to protect it – honestly

“Will we have to sell the house?” is the question behind most of our calls. The true answer is: it depends on who lives there, what kind of care is needed and what is done in what order – and the rules are far kinder than the people selling “asset protection” would have you believe. Here is what actually counts, with the 2026/27 figures.

Written by Francis, co-founder · registered mental health nurseReviewed by Samantha, co-founderLast reviewed 11 September 2026Sources: Care Act statutory guidance, CMA care homes advice, our editorial standards

Care at home: never countedThe value of the home you live in is disregarded for any care provided in it.

Care home: often disregardedA spouse, partner, relative over 60 or disabled relative still living there keeps the home out of the means test.

12 weeks’ graceThe first twelve weeks of a permanent placement disregard the home while you sort out what happens next.

THE RULES

When the house is counted, and when it is not

The council’s financial assessment counts capital above £23,250. Whether the home is capital depends on the situation, not on the council’s mood – the Care and Support Statutory Guidance (Annex B) sets it out.

Care in your own home

The home is never counted. Savings and income are assessed; the property is not.

Permanent care home – someone still lives there

Disregarded for as long as a spouse or partner, a relative aged 60 or over, a relative who is incapacitated, or a child under 18 lives in it as their home. Discretionary disregard for a carer who gave up their home to care.

Permanent care home – empty

Counted after the first twelve weeks. Then the choice is: sell, let (rent counts as income), or a deferred payment agreement with the council.

Temporary or respite stay

The home is disregarded for a temporary placement of up to 52 weeks, and beyond if the intention to return is realistic.

The deferred payment agreement

Where the home is counted, the council must offer a deferred payment agreement if the person has less than £23,250 in other capital and the home is not disregarded. The council pays the fees and takes a charge on the property; the debt is settled from the eventual sale, with interest (currently capped by regulations) and an administration fee. It is not a way of avoiding the cost. It is a way of avoiding a forced sale at a bad moment.

Before anything is put on the market

Check the NHS routes

If the person is eligible for Continuing Healthcare or Section 117 aftercare, the house is irrelevant – the NHS or council pays everything.

Check who lives there

A qualifying occupier keeps the home out of the means test entirely.

Get the needs assessment

A written statement of need is the only thing that makes a fee negotiable, and the council must do one regardless of money.

Use the twelve weeks

The property disregard buys time to get the funding position in writing.

Then decide

Sell, let, or defer – with regulated advice if the sums are large.

Funding entitlement check – £225

A written summary of every route – CHC, FNC, Section 117, Attendance Allowance, Pension Credit, the disregards and the means test – and what to do about each, in five working days. Before any money is moved.

Book the entitlement check

12 weeksThe property disregard at the start of a permanent placement – time enough to get the position in writing

Questions about the home and care fees

Can the council make us sell?

No. The council can count the property as capital, which means you are a self-funder until it is realised – but the deferred payment scheme exists precisely so that nobody is forced to sell while the person is alive.

Mum has moved into a home and Dad still lives in the house. Is it safe?

Yes – the home is disregarded for as long as a spouse or partner lives there. Only Mum’s share of savings and income is assessed.

My brother has lived with Mum for years as her carer. Does that count?

If he is over 60, or incapacitated, the disregard is mandatory. If not, the council has a discretion to disregard where he gave up his own home to care, and we help families put that case in writing.

What about the house if care is at home?

Never counted. That is one of the reasons live-in care is worth pricing against a care home – see home care, live-in or a care home?

Should we put the house in trust?

Ask a solicitor, and be wary of anyone who says yes quickly. A transfer made to avoid care fees can be treated as deliberate deprivation whenever it was made.